New analysis from the team at Morgans has included significant upgrades for two ASX 200 shares.
Both James Hardie Industries PLC (ASX: JHX) and Lottery Corporation Ltd (ASX: TLC) received a new accumulate rating from the broker.
These two ASX 200 stocks have moved in opposite directions in 2026.
James Hardie Industries shares have risen by over 21% year-to-date, while Lottery Corporation has fallen almost 7%.
However both have upside moving forward according to the team at Morgans.
Here is the latest outlook.
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James Hardie
James Hardie is the world's leading producer and marketer of fibre cement building products and a major supplier of fibre gypsum and cement-bonded boards.
The ASX 200 company held its combined James Hardie and AZEK Investor Day in New York on 15 September 2026.
The day centred on the "built to outperform, resilient by design" tagline, as management guided to 4% to 7% organic sales growth above market, while stressing that this growth did not require a US housing recovery.
Morgans said growth will come from the AZEK combination, synergies ahead of plan, and a leaner, lower-capex portfolio after the Europe sale.
The positive company story and the growth trajectory are only partially offset by the tough macro, a 75bps rise in the 30-year mortgage rate over the past six months, and a peer multiple de-rate. On this basis we upgrade to an Accumulate rating, whilst moderating our target price to A$43.00 (from A$45.00).
From current levels, this updated price target indicates an upside potential of 20%.
Lottery Corporation
This ASX 200 company is Australia's largest provider of lottery, Keno, and instant scratch products.
The team at Morgans has updated its forecasts on the company given domestic lottery conditions have not improved since the FY26 result.
We have marked our lottery tracker to market and now have tracked turnover running high single digits behind the prior comparative period. We cut FY27/28F Lotteries revenue by 2-3% and Lotteries EBITDA by 3-4%, with EPS down 6%/4%.
The change is a lower jackpot assumption, partly offset by a lower jackpot share of turnover, as base games and three price increases carry more of the mix.
The broker has upgraded its target price to $5.40 (previously $5.60).
From current levels, this indicates an upside potential of over 15%.
Following the September bond issue, our FY27 interest costs remain broadly unchanged with FY28 lifted nominally. At c.16.5x 12-month forward EV/EBITDA and a 3.3% fully franked yield, we think a poor sequence is in the price, and see upside from here if conditions improve.
